Wang Zhiqiang, GM of Willing New Materials Technology
"Although the strict environmental protection and security measures by government has caused some trouble for current operation of corporations, it is still pleasant to see this change because it is beneficial to shuffle the whole industry and increase industry concentration degree." Wang Zhiqiang, General Manager of Willing New Materials Technology Co., Ltd., said so during the “2017 China Rubber Annual Conference”.
With the government's strict environmental and security protection, since 2016, the domestic rubber chemicals industry market situation has experienced a big change compared to that in previous years.
Wang Zhiqiang stated that although these measures bring some trouble to current business, he is still very pleased to see such a change, because it is very helpful to reshuffle the whole industry and improve the concentration.
It is reported that in earlier years, there emerges some illegal enterprises in the domestic rubber chemicals industry because of insufficient management. These enterprises are lack of environmental protection and security measures, and often imitate or copy the research & development results of large enterprises. At that time, the whole rubber chemicals industry even shows a situation in which "bad money dives out of good money".
"Now, the market finally turns into a normal stage." Wang Zhiqiang said that as the situation changes, Willing also entered a benign operation with wage growth for workers and various benefits improvement.
It is understood that, as a lot of illegal enterprises were shut down, domestic mainstream rubber chemicals manufacturers, such as Willing, have all realized a good production and marketing condition, and gross profit margins now all returned to normal.
More importantly, they have put a lot of money into the construction of environmental protection and safety facilities, which exert actual benefit. Improvement in business environment not only ensures normal profits, but also keeps the corporations alive. Wang Zhiqiang explained that their biggest wish is that the government can further create a more fair and just business environment. In this way, it will be the greatest support for all enterprises, whether it is private, or state-owned.
Willing is a company producing and developing rubber cheicals, thermosetting resins and materials, and organic chemical intermediates. At present, the company is carrying out several “big moves”, one of which is to construct and produce the new devices. In April, with the new device putting into operation, its production capacity will increase from 30,000 - 40,000 tons to 60,000 -70,000 tons per year.
According to Wang Zhiqiang’s introduction, all of their increased production capacity have imported into the world's leading new technology. The delivery of these production capacity is beneficial to enhance its position in the industry, and even enhance the status of Chinese enterprises in the international market.
While increasing production capacity, Willing also conducts a Circular Economy Park project, which will connect the upstream and downstream products, and fully recycle and make use of the by-products of those main products.
In addition, they also prepared factory transformation and upgrading, planning to realize automation and informatization of all the existing production lines and achieve a high degree of integration of industrialization and informatization.
"In general, the market situation of auxiliary industry this year is very optimistic, and it will be better next year." Wang Zhiqiang claimed that once enterprises have a good gross margin, they will invest more resources to develop new technologies and do better in environmental protection and security.
He believes that in this scenario, as long as the government can adhere to established policies, to create a good business environment, China's several large rubber chemicals manufacturers will develop into a global leading enterprises in 5 years, even as good as any other foreign companies.
